Tread Horizon allows you to set fuel surcharges on an order (and its payables or receivables) based on a fuel index price and rates schedule. This is done through 3 items:
Fuel Price Index - Add the EIA fuel price here
Fuel Surcharge Schedule - Add your rates schedule here
Add-On - Apply this to projects and orders
Once configured, the correct surcharge rate is applied automatically to orders whenever fuel prices are updated.
This article covers how to:
Set up a Fuel Price Index
Create a Fuel Surcharge Schedule
Update fuel prices weekly
Create a Fuel Surcharge Add On
Apply the fuel surcharge to an order or project
Step 1: Set Up the Fuel Price Index
The Fuel Price Index is where you track the current price of fuel. Tread uses this price to automatically determine which surcharge tier applies on your orders.
Go to Settings from the top navigation bar.
In the left sidebar, scroll down to the Rates section and click Fuel Price Index.
Click + Create Index to create a new index (e.g., Gulf Coast (PADD 3)).
Once the index is created, click + Add Price to enter the current fuel price and the date it applies.
Click Save. The price will appear in the index table with its date.
Note: You should update the fuel price regularly (e.g., every Monday) to reflect current market prices. Each new price entry is date-stamped, so Tread applies the correct rate to orders based on their date.
Step 2: Create a Fuel Surcharge Schedule
The Fuel Surcharge Schedule defines the billing surcharge percentage that applies at each fuel price threshold. For example: 0% surcharge when fuel is at or below $3.50, 1% when it reaches $3.60, 2% at $3.70, and so on.
In Settings, click Fuel Surcharge Schedule from the left sidebar.
Click + Add Schedule to create a new schedule.
Give the schedule a name (e.g., FSC $3.50) and link it to your Fuel Price Index.
Select a Fuel Price Index
Select a Rate Type:
Percentage - Use this if your surcharge is a percentage (e.g. 2.5% of total freight)
Flat - Use this if you charge a flat fee per unit (e.g. $0.25 per Ton)
Click + Add Price to begin adding your rates.
For each tier, enter:
Price – the fuel price threshold (e.g., $3.50, $3.60, $3.70)
Billing Surcharge % – the surcharge percentage applied when fuel reaches that price (e.g., 0.0%, 1.0%, 2.0%)
Continue adding tiers as needed to cover your full price range.
Tip: Multiple schedules can exist — for example, one starting at $3.50 and another starting at $3.25.
Step 3: Update the Fuel Price Weekly
To keep surcharges current, you need to add a new fuel price entry each week.
Go to Settings > Fuel Price Index.
Select the index you want to update (e.g., Gulf Coast (PADD 3)).
Click + Add Price.
Enter the new fuel price and today's date, then save.
Once updated, Tread will automatically recalculate the applicable surcharge tier on all new orders going forward based on the updated price.
Step 4: Create a Fuel Surcharge Add On
After your schedule is configured, you need to create an Add On that links the fuel surcharge schedule to your orders. This Add On is what actually appears on invoices and driver pay.
In Settings, click Add On Charges from the left sidebar.
Click + Create Add On.
In the Update Add On dialog:
Description: Give it a descriptive name (e.g., FSC $3.50)
Rate Type: Select Fuel Surcharge
Fuel Surcharge Schedule: Choose the schedule you created (e.g., FSC $4.00 – 1% for every $0.10 over).
Add On Types: Select where this surcharge is available. We suggest selecting everything.
Click Update to save.
The Add On will now appear in the Add On Charges list with its associated fuel surcharge schedule and applicable types visible.
Step 5: Apply the Fuel Surcharge to an Order or Project
Once your Add On is created, you can apply it to orders from Dispatch or from the Projects view.
Open an order (from Dispatch or Projects).
Scroll to the Freight Rates section.
Under Customer Add Ons, click the ••• icon and click Add On. You can also apply the add on to Vendor Rates if you pass-through the charge.
Select the fuel surcharge Add On from the list (e.g., FSC $3.50).
The Add On will appear in the order with its Cost Rate, Invoice Rate, and Rate Type (Fuel Surcharge) displayed.
Note: The billing surcharge percentage shown on the order reflects the current fuel price at the time the order was created or last updated. If the fuel price is updated after the order is created, you may need to refresh or re-save the order for the new rate to apply.
How the Surcharge Is Calculated
Tread applies the surcharge percentage to the base freight rate. For example, if the customer rate is $31/ton and the current fuel surcharge is 1%, the surcharge Add On will calculate automatically as part of the invoice and driver pay totals.
The system works as follows:
You set a base fuel price threshold in the Fuel Surcharge Schedule (e.g., $3.50 = 0%).
Each additional $0.10 increase in fuel price adds 1% to the surcharge (or whatever increment you configure).
When you enter the current fuel price in the Fuel Price Index, Tread looks up the matching surcharge tier and applies it to orders using that Add On.